It _does not matter_ if it is an upgrade or full retail box version.
Normally it seems to happen when updating from within Windows, not from install media, but seems to be indicating a disk I/O error. Windows does recognize disk errors better than OS X HFS+. And yes, burning an ISO does need to be done at 2x reduced speed if using Apple's utility.
It could be the *optical drive* not reading the media; might want to try reburning the
disc (you'll need to see if you can install Windows in a VM using VirtualBox or something). Or if you can use another optical drive. Sometimes, soft or marginal
memory errors, too. And worth doing a full
chkdsk on the partition - you may need to enter command line mode instead of install, choose repair options.
From Windows7Forum:
What Worked
1-I installed windows server 2003 R2 SP2.(which is what server 2008 can be updated from. I didn't need to activate the server 2003 key because you have 60 days to do so and i only needed it for 1 hour)
2-i download MacicDisc(free download) and installed it on the server 2003
Freeware MagicISO Virtual CD/DVD-ROM(MagicDisc) Overview
3- I took the ISO file(the one that i burned about 20 DVD's with, that never worked)
and mounted it as a virtual drive using MagicDisc
4-Load up the setup and update from the server 2003-server 2008
5-Without any problems at all i had windows server running.
Thats what worked for me. For those wanting to install windows 7(which is everyone)
The idea is the same install windows XP professional x64 or Vista x64 (no need to activate)
Use magicDisc to mount ISO file and upgrade. That should do the trick for everyone, i hope.
Windows7forums +(last page)+
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For Windows Vista and Windows Server 2008, follow these steps:
Click Start, type cmd in the Start Search box, right-click cmd in the Programs list, and then click Run as administrator. If you are prompted for an administrator password or confirmation, type your password, or click Continue.
At the command prompt, type Chkdsk /f, and then press ENTER.
Press Y when you are prompted to check the disk next time that the system restarts.
Close all applications, and then restart the computer.
Note During the restart process, Windows checks the disk for errors and then starts.
After the computer has restarted, install the updates again.
If Method 1 does not resolve this issue, try Method 2.
http://support.microsoft.com/kb/956704